Konstantinos Kousouris @Le_kousou: "📺 Netflix (NFLX) – Strong..."

United Kingdom

📺 Netflix (NFLX) – Strong Earnings + Smart Capital Discipline = Stock Surge Yesterday and today were big for Netflix Inc.. Strong Q4/FY 2025 results — and today (Feb 27, 2026) the stock surged ~9–13%. Let’s break down what really happened 👇 📈 The Numbers (Q4 & FY 2025) Q4 2025: • Revenue: $12.05B (+18% YoY) → Beat estimates • Operating Income: $2.96B (+30%) • Operating Margin: 24.5% (+2.3 pts) • EPS: $0.56 (+31%) → Beat expectations • Free Cash Flow: $1.87B (+36%) Full Year 2025: • Revenue: $45.2B (+16%) • Net Income: $10.98B • Operating Margin: 29.5% (+~3 pts) • EPS: $2.53 (+28%) • Free Cash Flow: $9.5B (+38%) • Paid memberships: 325M+ globally This is scale + profitability + margin expansion at the same time. 🚀 Why The Stock Jumped Today Netflix walked away from the bidding war for Warner Bros. Discovery after the price escalated. Instead of overpaying and taking on ~$50B+ debt, management chose discipline. Market reaction? Relief. • Avoided dilution • Avoided massive integration risk • Will receive $2.8B breakup fee • Share buybacks resume immediately Co-CEOs Ted Sarandos & Greg Peters made it clear: The deal was “nice-to-have” — not “must-have.” And the market rewarded that mindset. 🎯 Strategy Going Forward 1️⃣ Organic Growth First Management remains focused on scaling what already works: • Better films & series • Expanding global slate • Improving product experience Content spend for 2026: ~$20B 2️⃣ Ads Business Accelerating • 2025 Ad Revenue: >$1.5B • 2026 expected: ~$3B The ad tier is no longer experimental — it’s becoming a serious profit engine. 3️⃣ Operating Leverage Guidance for FY 2026: • Revenue: $50.7–51.7B (+12–14%) • Operating Margin: ~31.5% • FCF: ~$11B Growth + expanding margins = strong financial engine. 💡 Why I Like This Move This is what disciplined capital allocation looks like. Instead of chasing empire-building M&A, Netflix chose: • Protect balance sheet • Preserve flexibility • Continue buybacks • Double down on organic growth 325M+ members. 98%+ retention. Ad business scaling fast. Strong FCF. They don’t need a legacy media acquisition to win. Yes, competition is intense. Yes, content spending is heavy. But Netflix continues to show: Scale → Monetization → Margin Expansion → Cash Flow → Buybacks. That’s a powerful cycle. The market didn’t just react to earnings. It reacted to discipline. What do you think — was walking away the right move? 👇📊 $NFLX (Netflix, Inc.) $PSKY (Paramount Skydance Corp) $WBD (Warner Bros Discovery Inc) $SPX500

Not investment advice. The author may have financial interests in the mentioned instruments.